Bitcoin Buyers Lose Control, But 2 Key Technicals Show One Last Rally is Imminent

Aayush Jindal

1 year ago

2 mins read

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Bitcoin is struggling to surpass the $7,800 resistance area against the US Dollar. It seems like BTC price could dip towards $7,600 or $7,400 before a fresh rally towards $8,000.

Bitcoin made two attempts to clear the $7,800 hurdle against the US Dollar, but it failed.
The price is showing a few bearish signs and it could correct towards $7,600 or $7,400.
It is testing a major bullish trend line with support near $7,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct a few points, but a run towards the $8,000 resistance is still on the cards.

Bitcoin Losing Bullish Momentum

In the past two sessions, bitcoin made two attempts to clear the $7,800 hurdle against the US Dollar. However, BTC price seems to be losing bullish momentum above $7,700 and it could correct lower in the near term.

The recent high was formed near $7,796 and the price is currently moving lower. It declined below the 23.6% Fib retracement level of the upward move from the $7,485 swing low to $7,796 high.

Bitcoin price is now testing a major bullish trend line with support near $7,700 on the hourly chart of the BTC/USD pair. If there is a successful close below the trend line support and $7,700, there is a risk of more downsides.

The next support is near the $7,640 level. It represents the 50% Fib retracement level of the upward move from the $7,485 swing low to $7,796 high. The main support is near the $7,600 level and the 100 hourly simple moving average.

If the bulls fail to protect the $7,600 support area (the recent breakout zone), there could be an extended decline. In the mentioned case, the price is likely to continue lower towards the next major support at $7,400.

Upside Thrust To $8,000?

In the near term, an upside thrust towards the $8,000 level is possible. If bitcoin price stays above the $7,600 support or the $7,400 uptrend pivot, there are chances of a run towards the $8,000 level.

Any further gains are likely to be limited, considering a major near the $8,000 level (as discussed in one of the previous analyses using the daily chart).

Technical indicators:

Hourly MACD – The MACD is now moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently declining and it is just below the 50 level.

Major Support Levels – $7,600 followed by $7,400.

Major Resistance Levels – $7,800, $8,000 and $8,080.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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